3900 NILES STREET BAKERSFIELD CALIFORNIA OFFERING MEMORANDUM
BAKERSFIELD CALIFORNIA THIS IS A CONFIDENTIAL MEMORANDUM intended solely for your own limited use in considering whether to pursue negotiations to purchase Niles Ridge Plaza (the Property ) owned by the owner (the Owner ). The Owner has Pacific Commercial Realty Advisors Cushman and Wakefield ( Brokers ) as the exclusive sales brokers to sell the Property. No other agent or broker is authorized to offer the Property unless and until that agent or broker has executed a written agreement with Brokers and that agreement has been executed by their interested purchaser. This confidential memorandum contains brief, selected information pertaining to the business and affairs of the Property and has been prepared by Brokers. Although this confidential memorandum has been reviewed by representatives of the Owner, it does not purport to be all-inclusive or to contain all of the information which a prospective purchaser may desire. Neither the Owner nor Brokers, nor any of their partners, officers, employees or agents have independently verified the information contained herein and they are not responsible for any errors or inaccuracies in the information. No representation or warranty, express or implied, is made as to the accuracy or completeness of this confidential memorandum or any of its contents, or any other written or oral communication transmitted to a prospective purchaser in the course of its evaluation of the proposed sale of the Property. There is no representation as to the environmental condition of the Property. You agree that the memorandum and its contents are confidential, that you will hold and treat it in confidence and that you will not disclose this memorandum or its contents to any other firm or entity without prior written authorization. Photocopying or other duplication is prohibited. You will use this confidential memorandum only for the purpose of evaluating the possible acquisition of the Property. All prospective purchasers agree that they will conduct their own independent investigation of those matters which they deem appropriate in order to evaluate this offering. Owner and Brokers expressly reserve the right at their sole discretion to reject any or all proposals, offers, or expressions of interest in the Property and to terminate discussions with any party at any time with or without notice. This confidential memorandum shall not be deemed a representation of the state of affairs of the Property or imply that there has been no change in the business or affairs of the Property since the date of preparation of this memorandum. The Property is submitted for sale subject to the right to make changes in any of the terms without notice. INVESTMENT ADVISORS JOSH SHERLEY Director T +1 661 633 3840 josh.sherley@paccra.com CA RE #01876855 TABLE OF CONTENTS 01 02 03 04 VINCENT ROCHE Senior Director Principal T +1 661 633 3817 vincent.roche@paccra.com CA RE #01155079 DUANE KEATHLEY Senior Director Principal T +1 661 633 3816 duane.keathley@paccra.com CA RE #00935011 EXECUTIVE SUMMARY PROPERTY DESCRIPTION FINANCIAL ANALYSIS MARKET OVERVIEW
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY Pacific Commercial Realty Advisors Cushman & Wakefield are pleased to present the opportunity to acquire Niles Ridge Plaza, a shopping center located in Kern County in the city of Bakersfield. The offering consists of approximately 11,223sf of retail. Situated on 1.04 acres of land, Niles Ridge Center is located at the intersection of Niles Street and Sterling Street in the Northeast quadrant of Bakersfield. Niles Street is a main east/west arterial serving Northeast Bakersfield. OFFERING TERMS $2,990,000 asking price $223,031.04 NOI 7.5% cap rate 11,223sf total rentable area Newer construction, built in 2009 Located across street from two grocery anchored shopping centers anchored by Vallarta Supermarket and Food Maxx, the primary grocery stores serving this area.) Located on Niles Street a major east/west arterial with over 17,500 cars per day Highly visible, situated at signalized intersection 77.8% current occupancy 1.04 acres total land area 4
EXECUTIVE SUMMARY INVESTMENT HIGHLIGHTS NEWER CONSTRUCTION Center was constructed in 2009 TENANT MIX Niles Ridge Plaza features a mixture of service and retail tenants that serve the surrounding residential area. NILES STREET LOCATION Located on Niles Street with excellent street visibility. Niles is a main east/west arterial. EXCELLENT NEIGHBORING TENANTS Located across from two grocery anchored shopping centers anchored by Vallarta Supermarket and Food Maxx, the primary grocery stores serving the area. Other neighboring tenants include Fallas Discount Stores, Aarons Rental, CVS and Dollar Tree.is area.) 5
Sterling Street EXECUTIVE SUMMARY Vacant Alex s Coughy Vacant 1,298 Sq.Ft. Barber Shop Shop Express 1,192 Sq.Ft. 2,402 Sq.Ft. 1,000 Sq.Ft. 936 Sq.Ft. 1,032 Sq.Ft. 1,086 Sq.Ft. 2,277 Sq.Ft. Niles Street SUITE TENANT SF 100 T-Mobile USA 2,402 101 Vacant 1,298 102 Alex s Barber Shop 1,000 103 Adriana s Insurance 936 104 Coughy Shop Express 1,032 105 Vacant 1,192 106 & 107 Quickeroo Nutrition 2,277 108 Papa Murphy s Pizza 1,086 TOTAL 11,223 6
PROPERTY DESCRIPTION
PROPERTY DESCRIPTION PROPERTY DESCRIPTION ADDRESS 3900 Niles Street Bakersfield, California 93306 LOCATION Niles Ridge Plaza is located at the north east quadrant of Niles Street and Sterling Road in the City of Bakersfield in Kern County, California. TRAFFIC COUNTS Approximately 13,621 cars daily on Niles Street and 3,915 daily on Sterling Road. ACCESS There are two entry points to the property. One on Niles Street offering right-in/right-out driveways and one on Sterling offering a right-in/right out left-in/left out driveway. PARKING The center provides striped surface parking for approximately 58 vehicles including 3 disabled accessible for a ratio of 5.16/1000. SQUARE FOOTAGE 11,233 square feet ASSESSOR S PARCEL NUMBERS AND SITE AREA 134-300-20 1.04 acres ZONING C-1 FRONTAGE 290.4+ linear feet along Niles Street YEAR BUILT 2009 8
AREA AERIAL PROPERTY DESCRIPTION Niles Street 9
PROPERTY DESCRIPTION SUBJECT APN: 134-300-20 1.04 acres 10
FINANCIAL ANALYSIS
FINANCIAL ANALYSIS FINANCIAL ANALYSIS $2,990,000 asking price $223,031.04 NOI 7.5% cap rate 11,233sf total rentable area 77.8% percentage leased FINANCIAL SUMMARY The following information is provided to assist investors in their initial underwriting: Rent Roll Financial Analysis Tenant Summary Lease Comparables 12
FINANCIAL ANALYSIS RENT ROLL UNIT NAME S.F. MONTHLY RENT* NNN ANNUAL RENT* DEPOSIT 100 T-Mobile USA 2,402 $.55 0 101 Vacant 1,298 - - 102 Alex s Barber Shop 1,000 $.55 $1,550.00 103 Adriana s Insurance 936 $.55 $3,250.00 104 Coughy Shop Express 1,032 $.55 $6,000.00 105 Vacant 1,192 - - 106-107 Quickeroo Nutrition 2,277 $.55 $3,800.00 108 Papa Murphy s Pizza 1,086 $.55 0 TOTALS 11,223 $20,332.32* $243,987.84* *Detail to be provided in response to all offers. 13
FINANCIAL ANALYSIS FINANCIAL ANALYSIS Actual Income Base Rent $243,987.84 NNN Reimbursement (2017) $53,115.00 Gross Income $297,102.84 Operating Expenses $(74,071.80) Net Operating Income $223,031.04 ROI 7.5% Stabilized Income Base Rent $298,444.14 NNN Reimbursement (2017) $74,071.80 Gross Income $372,515.94 Operating Expenses $(74,071.80) Net Operating Income $298,444.14 ROI 10% 14
FINANCIAL ANALYSIS TENANT PROFILES Square Feet 2,402 Square Feet 1,086 Square Feet 2,277 Square Feet 936 % of Building NRA 21.4% % of Building NRA 9.67% % of Building NRA 20.28% % of Building NRA 8.34% Annual Rent $108,258.96 Annual Rent $31,816.32 Annual Rent $30,602.88 Annual Rent $23,100.00 Company Website www.t-mobile.com Company Website www.papamurphys.com Company Website www.nfiptn.com Company Website www.adrianasinsurance.com NASDAQ TMUS As America's Un-carrier, T-Mobile US, Inc. is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 69.6 million customers. Based in Bellevue, Washington, T-Mobile US provides services through its subsidiaries and operates its flagship brands, T-Mobile and MetroPCS. NASDAQ FRSH Papa Murphy's Holdings, Inc. ( Papa Murphy s or the Company ) is a franchisor and operator of the largest Take n Bake pizza brand in the United States, selling fresh, handcrafted pizzas ready for customers to bake at home. The company was founded in 1981 and currently operates more than 1,500 franchised and corporate-owned fresh pizza stores in 39 states, Canada and United Arab Emirates. In addition to scratch-made pizzas, the Company offers a growing menu of grab 'n' go items, including salads, sides and desserts. Nutricion Fundamentals, Inc. was established in 1994 as a specialized grocery store focusing on supporting women, infants and children (families) participating in the WIC program. Nutricion Fundamentals, Inc. company brands include Prime Time Nutrition and Quickeroo. Adriana s Insurance, licensed by the State of California and now to sell On-Line Auto Insurance in Texas, Arizona and Nevada is the fastest growing insurance agency in Southern California. With over 20 years of experience and more than 60 Offices in Southern California. 15
MARKET OVERVIEW
MARKET OVERVIEW MARKET OVERVIEW DEMOGRAPHICS 1-Mile 3-Mile 5-Mile 2022 Projection 23,158 120,202 186,524 2017 Population 22,199 114,752 177,773 2010 Census 21,398 108,601 167,281 Growth 2017-2022.9%.9% 1.0% Growth 2000-2017.9 1.4% 1.4% 1-Mile 3-Mile 5-Mile 2022 Projection 6,489 35,502 57,233 2017 Total Households 6,184 33,654 54,137 2010 Census 5,815 30,918 49,343 Growth 2017-2022 1.0% 1.1% 1.1% Growth 2000-2017.6% 1.2% 1.3% BAKERSFIELD OVERVIEW Bakersfield is the retail trade center for Kern County s 891,995 residents. Bakersfield is California s 9th most populous city with over 379,000 people. It ranks 6th in population and density growth, and is 1st in population and wealth growth in the state. The median age is 30.7, offering the right balance of young and older professionals. 1-Mile 3-Mile 5-Mile 2017 Average Household Income $61,005 $55,216 $52,720 2017 Median Household Income $51,820 $46,707 $44,480 2017 Est. Per Capita Income $17,018 $16,315 $16,200 BAKERSFIELD S ECONOMY The Bakersfield retail market is comprised of just over 13.1 million square feet (msf) of space (excluding the 1.15-msf valley Plaza Regional Mall) The 2016 year-end estimated vacancy rate recorded 12.7%, a slight up-tick from 2015. Bakersfield reported over $8 Billion in retail sales in 2014 (More than any other city in LA County and Orange County besides Los Angeles.) The Bakersfield median household income is 5.5% higher than the nation s. KERN COUNTY S ECONOMY Located at the southern end of California s Central Valley, Kern County consistently ranks among the top five most-productive agricultural counties in the U.S. and is one of the nation s leading petroleum-producing counties. Kern County is geographically the center of California s population, making it accessible to 38 million consumers. Because of its unique geographical positioning, Kern County has also become the distribution center for some of the world s largest companies. Additionally, with more than 8,000 square miles, Kern offers everything from big city amenities to small town friendliness, along with outstanding recreational opportunities and easy access to ocean, alpine, and desert. Some Recent Headlines about Bakersfield and Kern County: Bakersfield Most Affordable Large Housing Market in California Bakersfield #2 for Fastest Growing Millennial Population in U.S. Kern County is Listed in the Top 10 for Fastest-Growing GDP s. Bakersfield MSA No. 2 For Most Diversified Large Metro Economy Bakersfield #1 for Housing Affordability in California Kern County #5 Metro in U.S. for Upward Mobility Bakersfield No. 1 in Retail Growth in California Bakersfield No. 1 in CA for retail job growth Kern s 110 Year Job Growth Among Highest in California Kern is the #2 Oil-Producing County in the U.S. Kern County Ranks #2 in Agriculture Production in the U.S. 17